Regional segments. Mota-Engil overview. Final remarks. Appendix. Europe. Executive Committee. Africa. Financials. Flagship projects.

Transcription

1 March 2017

2 Mota-Engil overview Regional segments Final remarks Appendix PAG. 2 PAG. 15 PAG. 34 PAG. 37 Europe Africa Latin America Executive Committee Financials Flagship projects Ascendi overview 1

3 Mota-Engil past main milestones Incorporation of Engil in Portugal Mota & Companhia begins operations in Portugal Mota & Companhia diversifies its service offering Lists on Euronext Lisbon s main share index Mota-Engil SGPS completes 110 Mn ABB Restructures organisational model to geographic business segments 175 Mn listed medium-term bonds issued Acquisition of EGF Mota-Engil SGPS completes 160 Mn ABB Ports & Logistics businesses sale Indaqua sale Agreement to sell Ascendi s assets Incorporation of Mota & Companhia in Angola Completion of the first major project: Luanda International Airport in Angola Expansion into Sub- Saharan countries other than Angola IPO of Mota & Companhia on the Lisbon Stock Exchange Merger of Mota & Companhia and Engil Enters the logistics sector through the acquisition of the Tertir Group in Portugal Awarded two sections of the Nacala Corridor railway project in Malawi Announced intention to spin-off and list its African business De-listing of MEAFR and ME SGPS share capital increase First closing of Ascendi s assets sale to Ardian 2

4 International footprint, local presence 22 countries Turnover 1 : 2.4 Bn Ebitda 1 : 367 Mn figures. 3

5 Distinctive capabilities Skilled Human Capital Leading positions Long standing experience Execution and logistics focus Equipment asset base Risk management Across regions and businesses 4

6 Feb-07 Jul-07 Dec-07 May-08 Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Mota-Engil s share Mota Family has long term commitment and fully supports strategy Mota Family has an equity stake of 63% Market capitalization: 395 Mn (03 March 2017) Payout policy: 50%-75% Ten year relative return 1 Ten year share price performance 1 ( ) 160% 110% 60% 10% -40% -90% -140% Source: Bloomberg Mota Engil PSI20 Index SXOP Index 5

7 Regional segments overview 2015 EBITDA contribution Europe Africa Latin America Turnover ( Mn/YoY) 994/+7% 835/-21% 700/+30% EBITDA ( Mn/YoY) 121/+25% 176/-36% 76/+107% EBITDA margin 12% 21% 11% EBITDA contribution 32% 47% 20% E&C 11% Angola 1 Peru E&S 21% Mozambique Mexico Waste 15% Malawi Brazil Logistics 6% Other Colombia 1 Sonangol (Angola s State oil company) and other Angolan investors bought a 49% stake in Mota-Engil Angola in

8 Diversified geographic exposure Turnover reflects diversified exposure to Europe, Africa and Latin America EBITDA margin reflects Africa s contribution, Europe s E&S business resilience and Latin America profitability improvement Robust backlog with Latin America representing 48% of the total Geographic diversification of Africa s backlog expected to continue Turnover 2015: 2,434 Mn EBITDA 2015: 367 Mn Backlog 2015: 4,087 Mn Europe Africa 28% 39% 20% 22% 32% 48% LatAm 33% 47% 30% 7

9 Strong backlog position Backlog evolution ( Bn) 1 Backlog/sales 2015: 2.0x Europe Africa LatAm Outside Europe 36% 53% 70% 77% 77% 78% 1 Contracts already financed. Excludes future revenues from concessions (motorways and EGF). 8

10 Rigorous investment policy Capex evolution ( Mn) % % % 5.0% % % Growth Maint. Capex / Sales Capex/ Backlog Growth Maint. Capex / Sales Capex/ Backlog Growth Maint. Capex / Sales Capex/ Backlog Sustaining future growth based on rigorous opportunities analysis Keeping a strict investment policy to optimize cash management 9

11 Committed to decrease net debt/ebitda 2300 Net debt 1 and EBITDA evolution ( Mn) 4.1x 5x Net debt/ebitda Total net debt Non-recourse debt x x x x 1, x 1, x 3.4x 4x In June x 3x 2x 2x 1x EBITDA 141 1x Interest Coverage 3 2.2x 2.1x 2.0x 2.3x 2.6x 1.2x x 1 Excludes leasing and factoring. In 2015 net debt is deducted from the financial assets held by Africa. 2 Mota-Engil s last twelve months EBITDA, including EGF annualized EBITDA and net debt related to EGF s acquisition and consolidation (deducted from the financial assets held by Africa). 3 Interest coverage = EBIT Interest expenses 10

12 Net debt down 238 Mn in the 1H16 Net debt, including leasing and factoring, amounted to 1,432 Mn, down 238 Mn in the 1H16, benefiting from asset sales and balance sheet focus Non-recourse net debt of 107 Mn totally related to EGF Leasing and factoring of 212 Mn, of which 140 Mn is related to leasing Average cost of debt of 5.6%, down year to date, but in the short term slightly impacted by the regional mix Average debt life at 2.48 years Gross debt maturity 1, June 2016 ( Mn) Average cost of debt and average debt life (years) % 6.18% 5.78% 5.49% 5.60% year 2 years 3 years 4 years 5 years > 5 years Dec13 Dec14 Dec15 Mar16 Jun16 Non-revolving Revolving 1 Excluding leasing and factoring 11

13 Maintaining high level of liquidity Liquidity position, June 2016 ( Mn) Total liquidity position of 573 Mn, corresponding to c.30% of total gross debt, including leasing and factoring 178 Invested capital optimisation, namely in working capital should contribute to further improvement Recent Ascendi s transaction completion and remaining Ascendi s assets sale will further strengthen the capital structure Cash & equivalents Undrawn credit lines Total 12

14 Diversifying funding sources Diversification of financing sources, decreasing dependence on bank debt, that currently corresponds to 65% of the total, down from 78% in 2012 Bond issues playing a crucial role in changing debt profile: US$50 Mn; 110 Mn, US$25 Mn, 95 Mn issued in July 2015 Bank Loans exposure to international banks is 30% Bank loans Commercial paper Bonds 0% 22% Funding sources 15% 22% 22% 20% 21% 14% 78% 65% 57% 65%

15 Mota-Engil overview Regional segments Final remarks Appendix PAG. 2 PAG. 15 PAG. 34 PAG. 37 Europe Africa Latin America Executive Committee Financials Flagship projects Ascendi overview 14

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17 At a glance Turnover ( Mn) EBITDA ( Mn) and margin (%) 1,196 CAGR -4% CAGR +4% 12% % 12% 11% 10% 8% 9% Backlog 1 ( Mn) % 2,145 CAGR -16% Contracts already signed and financed. Excludes future revenues from concessions (motorways and EGF). 16

18 Leadership in E&C Positioning Market leader Strong profitability Infrastructure: highways, railways, dams, pipelines,... Construction: public and industrial buildings, real estate,... Strategy Maintain leadership Optimise global structure Increase resources mobility in anticipation of the construction sector recession in Portugal Leverage on competencies, know-how and Human Capital to strengthen business internationalization Growth opportunities Infrastructure and Construction sectors key to foster economic growth Portugal s Government Plan Portugal 2020, partially financed by EU funds and contemplating railway works among others Poland s continues to be a beneficiary form EU structural funds 17

19 Leadership in waste management Positioning Market leadership in: Waste collection, with 53% share in privatised market, supplying 2.2 Mn inhabitants Waste treatment, following the recent EGF acquisition, which has a market share of 68% High rate of contracts renewals Resilient margins Strategy Explore opportunities in Eastern Europe, Angola, Mozambique, Brazil and Mexico, based on existing know-how Cross-selling of related services to off-set potential pricing pressure Growth opportunities International opportunities, namely in Latin America and Africa, leveraging on the Group s competitive advantages, particularly following EGF s acquisition 18

20 EGF s assets highly complementary EGF serves around 6.4 million inhabitants, which represents a 68% market share in municipal solid waste (MSW) treatment business, with 65% of EGF revenues resulting from resilient sources Waste management Equity price of c. 150 Mn, and EV of c. 411 Mn, corresponding to an EV/EBITDA13 multiple of 6.2x Turnover of c. 173 Mn and EBITDA of c. 67 Mn in 2013 Regulatory framework for the period approved, with a RAB of 273 Mn and ROA of 6.14% Integrated management with existing business, SUMA, will allow for synergies and will help gathering opportunities in Africa and LatAm SUMA EGF CESPA Focsa Public entities Company fully consolidated since 3Q15 19

21 Strategic overview of M&A announcements EGF Ports and Logistics businesses Growth International opportunities namely in Latin America Sector increasingly concentrated and more attractive for major and global players Unique resources Strong know-how and wide technology solutions Strong know-how, but scale is critical to succeed and grow Invested capital Light or less intensive More intensive Profitability 44% EBITDA margin 1 18% EBITDA margin EBITDA margin EBITDA margin contribution to Mota-Engil s consolidated EBITDA of the assets under the transaction perimeter that are fully consolidated. 20

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23 At a glance Turnover ( Mn) CAGR +5% EBITDA ( Mn) and margin (%) CAGR +9% % 21% Backlog 1 ( Mn) CAGR +6% 1, Contracts already signed and financed

24 Present for 69 years in Africa Positioning Currently present in 11 countries Leading provider of integrated engineering and construction services Main segments: Infrastructure: roads, railways, dams, maritime works, concessions, power Construction: public and industrial buildings, real state Environmental services, logistics Strategy Focus the activity in SADC region: Competitive advantage of multicultural experience and equity brand Track record in flagship infrastructure projects Focus on big projects with multinational private companies and infrastructure development projects Local resources in place to effectively respond to logistical challenges Growth opportunities Government/supranational programmes, namely in energy, transport, agro and water businesses (PIDA US$360 Bn) Private investments namely in the power, Oil&Gas, mining, logistics and agrobusiness sectors 23

25 Significant local resources Human capital and machinery: Around 11,000 employees (including c.1,500 expatriates) and c. 4,500 items of heavy equipment on site Viana warehouse: Total storage area of 18,200 m 2, key to enable maintaining prudent levels of key materials, equipment and components required by operations Precast factories & project camps: Facilities that ensure self-reliance of operations in remote and challenging environments, complemented by camps that house and cater the project s workforce Quarries and aggregate batching plants: Total installed capacity of 2,940 ton/hr, with 19 plants distributed through Angola (seven), SADC (ten) and West Africa (two) 24

26 Major growth opportunities ahead The Programme for Infrastructure Development in Africa (PIDA) which amounts to US$ 360 Bn envisages infrastructure development in the period The African Regional Transport Infrastructure Network (ARTIN) programme, part of PIDA s programme, aims at building a road network connecting major cities and is expected to be complemented with other important infrastructure investments, namely ports and a standardized railway network PIDA Transport Networks 2020 & Corridor 2020 Corridor 2040 TAH 2020 TAH 2040 ECCAS Connectivity Hub Port Programmes ARTIN Programme 1 Infrastructures to be built until 2040 Modern Highways 37,300 km Modern Railways 30,200 km Port Capacity 1.3 Bn tons Hydroelectric power generation 54,150 MW Interconnecting powerlines 16,500 km New water storage capacity 20,101 hm 3 1 PIDA, African Development Bank Group. 25

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28 At a glance Turnover ( Mn) EBITDA ( Mn) and margin (%) CAGR +49% 700 CAGR +46% 76 12% 11% Backlog 1 ( Mn) CAGR +53% 1, Contracts already signed and financed. Excludes future revenues from concessions (motorways and EGF). 27

29 Present for more than 16 years in the region Positioning Current four core countries: Peru, Colombia, Brazil and Mexico Brazil and Mexico entry through highway concessions Main segments: Infrastructure: roads, highways, railways, pipelines, dams, power Construction: private buildings Recent highway concessions: three in Mexico, two in Colombia and one in Aruba Strategy Target projects mainly in: roads, railways, mining infrastructure, ports, waste collection, Oil&Gas infrastructure, Energy Focus on current countries Increase business scale in order to maximize profitability Growth opportunities Government investment, mainly in infrastructure Government reforms in Mexico, namely in Oil&Gas sector, to drive infrastructure investment 28

30 Different market approaches Start of operations in 2008 through the award of a road concession, being the country with the highest backlog Top 5 in Mexico Construction diversification (roads, railways, light rail, buildings) and reinforce Concessions portfolio Entry in the electricity generation business in 2015 Start of operations in Latin America through Peru in 1998 Top 4 in Peru Until 2010 operations in mining and road infrastructure, and since then also leveraged on private investment To reinforce: Start of operations in 2011, with first project awarded one year later Partnership with ODINSA in 2013, leader in the concessions sector in Colombia First concession awarded in 4G Colombian Infrastructure Plan in 2014 Start of operations in 2009 through road concessions Acquisition of 50% stake in ECB in 2012 Competitive edge of having full engineering license for any project in Brazil Regional track record with the financial market, including multilaterals Partnerships with local companies Business diversification to waste management activities, namely in Mexico and Brazil 29

31 Entering in Mexico s Electricity Liberalised Market A new business Leading role in the opening of Mexico s electricity liberalised generation market Build, explore, operate and maintain electricity generation plants for a period of 30 years through Generadora Fénix (Mota-Engil Mexico with a 51% stake) No upfront investment requirements, no labour or facilities related liabilities assumed and resilient cash flow expected Strategic Rationale Strong track record in Mexico, a core country for the Group Positive outlook for the sector, namely in electricity generation with the new electricity law opening the sector to private players Complementary know-how Growth Opportunities Opportunities Existing hydro plants already in operation with c.300 MW Option to add 1,700 MW through a CCGT (when is PPA signed), totalling 2,000 MW of installed capacity 30

32 Major growth opportunities ahead Peru Planned investment of US$21 Bn in transport infrastructures for the period , which includes section 4 and 5 of the Longitudinal de la Sierra Road Project, lines 3 and 4 of the of Lima and Callao metro and a new terminal in San Juan de Marcona port Infrastructure investment plan 1 (US$ Bn) Mexico The National Infrastructure Plan for the period includes investments in the transport sector expected at US$46 Bn, including new highways, construction and expansion of roads, railways, ports and airports Infrastructure investment plan 2 (US$ Bn) 1 Source: Peru's Plan Nacional de Infraestructura Source: México s Programa Nacional de Infraestructura

33 Major growth opportunities ahead Brazil The National Plan for Logistics and Transportation includes US$ 27 Bn to build c.40,000 km of highways and railways for the period Colombia The Fourth-Generation Concession Plan (4G) seeks an investment of US$ 26 Bn, including 40 projects to renovate 8,000 km of roads and to construct 3,500 km of four-lane highways in the period Infrastructure investment plan 1 (US$ Bn) US$26 Bn 4G Concession Plan 2 investment Source: Brazil s Plano Nacional de Logística e Transportes. 2 Source: Colombia s Agencia Nacional de Infraestructuras. 32

34 Mota-Engil overview Regional segments Final remarks Appendix PAG. 2 PAG. 15 PAG. 34 PAG. 37 Europe Africa Latin America Executive Committee Financials Flagship projects Ascendi overview 33

35 Strategic pillars Cash-flow generation Sustainable growth Controlled risk Selectivity of projects profitability and cashflow Higher weight of resilient activities Regional and markets balance Rotation and monetisation of assets Focus on current strategic markets Diversification of the client and supplier base Capex and working capital optimisation Projects with scale and higher profitability Funding sources diversification Divestment of nonstrategic assets Focus on utilities businesses (waste and energy) Focus on risk assessment and management

36 Financial strategy Financial strategy pillars Efficient capital allocation Capex rationalisation and working capital optimisation Long-term financial partnerships Local funding for treasury and liquidity management Diversification of funding sources

37 Mota-Engil overview Regional segments Final remarks Appendix PAG. 2 PAG. 15 PAG. 34 PAG. 37 Europe Africa Latin America Executive Committee Financials Flagship projects Ascendi overview 36

38 Executive Committee Degree in Law With Mota-Engil since 1990, holding several management positions Gonçalo Moura Martins CEO and Chairman Africa Degree in Economics Since 2009 in senior positions in the Group Degree in Civil Engineering With the Group since 2006 in senior positions Degree in Civil Engineering With the Group for 30 years Degree in Civil Engineering Member of the Mota- Engil Board since 2008 José Pedro Freitas CFO Carlos Mota Santos Chairman Europe and Latin America Martinho de Oliveira CEO Europe (E&C) Ismael Gaspar CEO E&S Degree in Civil Engineering More than 6 years of experience in the Group, namely in Africa s division Degree in Law Working for Mota-Engil since 2008, being the CEO of LatAm region since 2012 Degree in Civil Engineering Previously CEO of Mota-Engil E&S and working in the Group for 24 years Manuel Mota CEO Africa João Parreira CEO Latin America Eduardo Pimentel IT, HR, Strategic planning 37

39 Profit & Loss P&L ( Mn) Europe Africa LatAm YoY Turnover ,434 2,368 +3% EBITDA (10%) EBITDA margin 12% 21% 11% 15% 17% (2 p.p.) EBIT (38%) Net financials (135) (131) (3%) Associates 67 (19) n.m. EBT (18%) Minority interests % Net income (62%) 38

40 Balance sheet Balance Sheet ( Mn) Jun.16 Dec.15 Fixed assets 1,389 1,490 Financial Investments Long term receivables Non-current Assets held for sale (net) Working capital ,477 2,814 Equity Provisions Long term payables Net debt 1 1,221 1,455 2,477 2,814 Invested Capital 1,795 2,148 1 Net debt deducted from the Angolan government securities.. 39

41 Flagship projects - Europe Centre for the Unknown Building, Portugal ( 77.5 Mn) Construction of a research center consisting of laboratories, medical consultation areas, diagnosis and cancer treatment in Lisbon Developed across 60 thousand square meters Concluded in 730 days Alto do Lindoso Dam, Portugal ( 369 Mn) Construction of a vault type concrete dam with double bend in Lima River 110 meters high, 21 meters thick and 297 meters crown development Concluded in 1992, remaining a milestone in the Company s major projects Section of expressway S17, Poland ( 158 Mn) Construction of a section of the two-lane expressway S17, which connects Warsaw and Lublin Works included a 24 km length stretch, as well as a network of access roads, 10 km of noise barriers, 7 bridges, 13 overpasses and 4 interchanges Concluded in 24 months 40

42 Flagship projects - Africa Section 3 and 5 of Nacala Corridor Project, Malawi ( 540 Mn): Construction of 2 sections of the Nacala Railway Corridor, connecting the coal mines in Moatize and the port of Nacala (in Mozambique) through Malawi Civil works, earthworks, supply of ballast and sleepers and assembly of the railway superstructure Completed in 2H14 Calueque Dam, Angola ( 171 Mn): Rehabilitation and completion of Calueque Dam on the Cunene River, with the addition of a hydroelectric plant and the installation of pumps Project includes the civil works and electromechanical installations To be concluded in 2015 Olympic Village and Olympic Pool, Mozambique ( 114 Mn): Construction of the Olympic Village, for participants of the PAN African Games using Cold Formed Steel (first time in Africa) 15 hectares, comprising 136 buildings and 848 apartments Completed in 10 months 41

43 Flagship projects - Latin America Perote-Xalapa Project, Mexico ( 180 Mn): Highway construction connecting Mexico City to the coastal city of Veracruz, where the most important Atlantic port of the country is located Extension of 60 km with several special works of art Concluded in 2012 Tailings Storage Facility Toromocho Project, Peru ($147 Mn): Construction of an earth dam Over 5 Mn m3 of fill material at an altitude of approximately 4,600 meters Concluded in 2013 Carajás railway, Brazil ( 243 Mn): Contract with the Brazilian company Vale for the duplication of Blocks A2, A3 and A4 of Carajás railway Works include an extension of 150 km, including 12 bridges and ten viaducts Block A2 expected to be completed in December 2016 and Blocks A3 and A4 in June

44 Ascendi Main shareholder, with a 60% stake in Ascendi, of 11 concessions (1,541 kms) awarded within the Portuguese toll-roads PFI Program Accounted as Assets held for Sale in December 2015 Transaction with the infrastructure fund Ardian regarding a stake of 50% in five Portuguese concessions for c. 300 Mn Agreement with Ardian to sell more assets in Europe for million reached the first close in January 2017 Negotiations underway to sell Ascendi s remaining assets 43

45 Disclaimer This presentation used sources deemed credible and reliable but is not guaranteed as to accuracy or completeness. It also contains forward looking information that expresses management s best assessments but might prove inaccurate. The information contained in this presentation is subject to many factors and uncertainties and therefore subject to change without notice. The company declines any responsibility to update, revise or correct any of the information hereby contained. This presentation does not constitute an offer or invitation to purchase securities of Mota-Engil. 44

46 IR contacts João Vermelho Director, Head of Investor Relations Maria Anunciação Borrega Investor Relations Officer Rua de Mário Dionísio, Linda-A-Velha Portugal Tel